Recapture account approach: contracting to sell power from the capital-intensive cogeneration project
The Recapture Account Approach may offer a solution to the problem that, while utilities and state commissions may believe that oil and gas prices will go up again, they are unlikely to commit themselves to long-term contracts for waste-fueled or coal-fired cogeneration power. The approach uses a contract divided into two time periods: a fixed rate period, which covers the period when the proposed project will have significant debt service requirements, and a repayment period, which runs for a period equal to the fixed price period. While this would not eliminate the risk of fuel price fluctuation, the recapture account approach to power sales contracting gives the ratepayer, the cogenerator's ultimate customer, a no-lose proposition.
- OSTI ID:
- 6496013
- Journal Information:
- Cogener. Small Power Mon.; (United States), Journal Name: Cogener. Small Power Mon.; (United States); ISSN CSPME
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
290800* -- Energy Planning & Policy-- Heat Utilization-- (1980-)
296000 -- Energy Planning & Policy-- Electric Power
ACCOUNTING
COGENERATION
CONTRACTS
DEUS
ECONOMICS
ELECTRIC POWER
ENERGY SYSTEMS
FINANCING
MARKETING
POWER
POWER GENERATION
SALES
STEAM GENERATION